A Receiver Cannot be Entrusted to Revoke a Trust

Nigel K. Meeson Q.C., Stephen Leontsinis • Posted 30/09/2009 • Under Articles

A RECEIVER CANNOT BE ENTRUSTED TO REVOKE A TRUST: A Case Note on a Recent Decision of the Grand Court of the Cayman Islands

In TMSF v Merrill Lynch Bank and Trust Company (Cayman) Limited and others (26 June 2009) Smellie C.J. had to consider whether a judgment creditor was entitled to an order for the appointment of receivers by way of equitable execution, in order to force the judgment debtor to exercise his reserved power as settlor of two Cayman Islands trusts; to revoke those trusts and apply the proceeds in partial satisfaction of the judgment debt. The judgment debt which was sought to be enforced was a Turkish judgment enforced in the Cayman Islands at common law by way of action and summary judgment.